DBM sets aside P238 billion for oil crisis response

MANILA, Philippines — The Department of Budget and Management, under the directive of President Marcos, has identified P238 billion in available funding to support the government’s response to the ongoing global oil crisis, while mandating a 20 percent reduction in non-essential government spending to create additional fiscal space.

Speaking before the House committee on ways and means on April 8, DBM Secretary Rolando Toledo emphasized the need for disciplined and targeted fiscal action amid rising fuel costs.

“As far as our response to this crisis is concerned, we have around P238 billion from available appropriations – from the 2026 GAA (General Appropriations Act), and both automatic and continuing appropriations,” Toledo said. “The government’s priority is to ensure that every peso is directed to sectors most affected.”

The funding pool – sourced from the 2026 General Appropriations Act, continuing appropriations and automatic appropriations – will support key interventions, including fuel subsidies for the transport sector, assistance to farmers and fisherfolk, health care support and other targeted social protection programs.

Among the initial measures already underway are P2.5 billion in fuel subsidies for transport operators and an additional P1 billion for service contracting.

Toledo underscored that government support will remain focused and deliberate.

“In times like this, targeted subsidies are the most prudent approach – ensuring that limited resources reach those who need them most, without compromising fiscal stability,” he said.

Support is also being extended through repatriation programs of the Department of Migrant Workers, including assistance provided through the Overseas Workers Welfare Administration, alongside employment support under the Department of Labor and Employment’s TUPAD program, as well as the Presidential Assistance to Farmers and Fisherfolks of the Department of Agriculture.

At the same time, the DBM is implementing strict efficiency measures across national government agencies by reducing non-essential Maintenance and Other Operating Expenses (MOOE). These include limiting official travel to essential activities, maximizing virtual engagements, strengthening energy conservation efforts and streamlining operational expenditures.

These measures are expected to generate savings ranging from P12.8 billion to P25.6 billion from March to December 2026, depending on the level of compliance across agencies.

Toledo gave assurance that essential and frontline services, including education, health and social protection, will remain fully protected and exempt from the reductions.

“The instruction of President Marcos is to protect the Filipino people first. Even as we tighten spending, we will ensure that critical services remain uninterrupted and that assistance reaches those who need it most,” he said.

The DBM continues to work closely with implementing agencies to ensure the timely and effective delivery of interventions, reinforcing the government’s commitment to cushion the impact of rising global oil prices on Filipino households.